Broadcom’s 34x Valuation Slides to 15x on 2028 Earnings Forecast
MRVL•Broadcom trades at 34.0 times this year’s expected earnings while forecasts for 2028 imply an effective valuation of just 15.1 times, representing a 55% discount. Management projects 84% consolidated revenue growth next quarter in AI semiconductors after recording over $30 billion in AI chip bookings last quarter.
1. Valuation Discrepancy
Broadcom’s stock trades at 34.0 times projected earnings for this year, yet analysts expect earnings growth by 2028 to bring the effective multiple down to 15.1x, creating a 55% valuation discount for long-term holders.
2. Future Earnings Impact
Consensus forecasts anticipate revenue growth of roughly 48.1% annually through 2028, a marked acceleration from the past year’s 32.3% increase, which underpins the steep decline in forward multiple despite the current premium.
3. AI Segment and Management Guidance
Management forecasts 84% consolidated revenue growth next quarter driven by “insatiable” AI semiconductor demand, supported by over $30 billion in AI chip bookings last quarter and visibility stretching into 2028.
4. Risks and Upside Potential
Shares have fallen as much as 47% in prior market shocks, so the 15.1x forward multiple offers a margin of safety; if the stock trades at a midpoint 24.6x on 2028 earnings, it could be about 62% higher than today.
